The International Advisory and Monitoring Board (IAMB) on Iraq met on September
7–8, 2004, and issued the following statement:

"In connection with its work related to UN Security Council resolution
1483 (2003) the IAMB received a briefing from KPMG on the status of the second
stage of the external audit work, i.e., the export sales of Iraqi oil, petroleum
products and natural gas, and the DFI operations for the period January 1 through
June 28, 2004. The audit work is largely complete and KPMG expects to issue
the final audit reports in early October 2004. Similar to the process for the
first stage audit reports (for the period May 22, 2003 through December 31,
2003), the IAMB will ensure that the audit reports are made public (see http://www.iamb.info/dfiaudit.htm)

"The special audit requested by the IAMB to determine the extent of sole-sourced
contracts funded by the DFI has yet to be commissioned. Also, the IAMB has
not received reports on audits undertaken by various US agencies on sole-sourced
contracts, despite repeated requests. The IAMB expressed its strong concern
with these delays that hamper fulfillment of its mandate.

"In connection with its work related to UN Security Council resolution
1546 (2004) the IAMB discussed the revised terms of reference and rules of
procedures for its work, which it expects to finalize shortly. The IAMB reviewed
the scope of work for the external auditors to be appointed by the Government
of Iraq to audit the oil export sales and DFI operations since June 28, 2004
in accordance with resolution 1546. The IAMB, in particular the Iraqi member,
will work with the Government of Iraq to ensure the expeditious approval and
appointment of duly qualified external auditors.

"The next meetings of the IAMB are tentatively scheduled for October
11–12 and December 6–7."